Kellogg Moves To Permanently Replace Striking Workers While Paying CEO $11 Million

Striking workers at Kellogg voted no today on a frugal offer from management. The terms included a miserly 3% raise that will get eaten up by inflation before workers can spend it.

Is the company too poor to pay its workers a fair wage? Apparently not, if we judge by how much it able to pay its top boss.

The most recent data shows that Chairman and Chief Executive Officer, Steve Cahillane, received over $11 million in total compensation last year.

Yet when workers asked for a living wage and sane hours, the company said that the union members had “unrealistic expectations.”

Reuters reports on today’s developments:

“Kellogg Co said on Tuesday a majority of its U.S. cereal plant workers have voted against a new five-year contract, forcing it to hire permanent replacements as employees extend a strike that started more than two months ago.

Temporary replacements have already been working at the company’s cereal plants in Michigan, Nebraska, Pennsylvania and Tennessee where 1,400 union members went on strike on Oct. 5 as their contracts expired and talks over payment and benefits stalled.

‘Interest in the (permanent replacement) roles has been strong at all four plants, as expected. We expect some of the new hires to start with the company very soon,’ Kellogg spokesperson Kris Bahner said.

Kellogg also said there was no further bargaining scheduled and it had no plans to meet with the union.

The company said ‘unrealistic expectations’ created by the union meant none of its six offers, including the latest one that was put to vote, which proposed wage increases and allowed all transitional employees with four or more years of service to move to legacy positions, came to fruition.”

For the rest of the story, visit Reuters here.

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